September 6, 2023

Net forex inflow rises 24% to $7.2bn

THE net foreign exchange inflow through the economy rose quarter-on-quarter (QoQ) by 24.7 percent to $7.2 billion in the first quarter of 2023 (Q1’23), from $5.78 billion in the preceding quarter, Q4’22.

The Central Bank of Nigeria, CBN, disclosed this in its Q1’23 Economic Report, adding that the net outflow through the apex bank also increased QoQ by 30 percent to $1.69 billion in Q1’23, from $1.30 billion in Q4’22, reflecting the banks increased intervention efforts in the foreign exchange market segments

CBN stated: “The economy recorded a higher net foreign exchange inflow of $7.20 billion.

“Foreign exchange inflow into the economy increased by 17.5 per cent to $17.18 billion from $14.62 billion in Q4 ’22.

“Foreign exchange inflow through the Bank increased to $7.17 billion, from $6.21 billion in the preceding quarter.

“Foreign exchange inflow through autonomous sources increased to $10.08 billion from $8.41billion in the preceding period.

“Foreign exchange outflow through the economy increased by 12.8 per cent to $9.98 billion, relative to $8.85 billion in Q4 ’22.

“Outflow through the Bank increased by 17.9 per cent to $8.86 billion from US$7.51bilon in the preceding quarter. However, autonomous outflow fell by 16.2 per cent to $1.12 billion from $1.34billion in the preceding quarter.

“Consequently, net foreign exchange inflow through the economy increased by 24.7 per cent to $7.2 billion from $5.78billion in the preceding quarter.

“Similarly, net inflow through autonomous sources rose to $8.89 billion from $7.08 billion in the preceding quarter.

“However, a net outflow of $1.69 billion was recorded through the Bank, compared to a net outflow of $1.30 billion in the preceding quarter.”

Meanwhile, analysis of data from the CBN quarterly statistical tables showed that the apex bank sold $4.16 billion foreign exchange through the Investors and Exporters (I&E) window, Small and Medium Enterprises (SMEs) and Invisibles in Q1’23.

This represents a 6.4 percent QoQ rise when compared with $3.91 billion foreign exchange sales in Q4’22.